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BitGo

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BitGo
HeadquartersPalo Alto, CA
Key peopleCEO & Co-founder, Mike Belshe
ServicesBitcoin / Blockchain Security Platform API's / Custodial Services / Settlement Services
URLhttps://www.bitgo.com
Launched2013; 11 years ago (2013)

BitGo is a digital asset trust company and security company,[1][2] headquartered in Palo Alto, California. It was founded in 2013 by Mike Belshe and Ben Davenport. Galaxy Digital announced its acquisition of BitGo in 2021 for $1.2 billion.[3]

The company offers a multisignature bitcoin wallet service, where keys are divided among a number of owners to manage risk. Generally, BitGo wallets have three keys: one held by BitGo, and two held by the wallet's owner.[4][5] Wallets can be configured in both hot and cold configurations,[6] as well as non-custodial and custodial configurations.

BitGo also serves as the sole custodian for bitcoin that people deposit to receive a tokenized form of that bitcoin known as Wrapped Bitcoin or WBTC that can be exchanged on the Ethereum blockchain.[7]

History

In June 2014 the company received US$12 million in venture capital funding led by Redpoint Ventures.[8]

In January 2015 BitGo announced the general availability of their Platform API. The following month the company bought an insurance policy from XL Catlin against theft from its wallets.[9]

On August 2, 2016, Bitfinex, a digital currency exchange using BitGo software, announced it had suffered a security breach.[10] BitGo was not itself hacked, but processed withdrawal requests from the hacker, who had obtained access to Bitfinex's keys.[11]

In September 2018, BitGo was approved by the South Dakota Division of Banking to act as a qualified custodian for digital assets and created BitGo Trust Company.[12]

In October 2018, the company raised US$15 million in venture capital funding from Goldman Sachs and Mike Novogratz's Galaxy Digital.[13]

In December 2020, the Office of Foreign Assets Control announced that BitGo has paid $98,830 to settle apparent violations of multiple sanctions programs.[14]

In March 2021, BitGo Receives NY Trust Charter from the New York State Department of Financial Services.[15]

In May 2021, Galaxy Digital announced its acquisition of BitGo for $1.2 billion in a cash and stock deal, marketing the first $1 billion deal in the cryptocurrency industry.[16]

References

  1. ^ KING 5 News (January 20, 2014). "Seattle entrepreneur mines Bitcoin phenomenon". KING-TV.{{cite web}}: CS1 maint: numeric names: authors list (link)
  2. ^ Robert McMillan (April 9, 2014). "A Hack That Makes Bitcoins a Whole Lot Harder to Steal". Wired.
  3. ^ Vigna, Paul (May 5, 2021). "Galaxy Digital to Buy BitGo in Crypto Sector's First $1 Billion Deal". Wall Street Journal. ISSN 0099-9660. Retrieved May 23, 2021.
  4. ^ Michael J. Casey (June 16, 2014). "Bitcoin Security Startup BitGo Gets More Funds; Ex-Verisign CEO Joins Team". The Wall Street Journal. Retrieved October 20, 2018.(subscription required)
  5. ^ Kim-Mai Cutler (June 16, 2014). "BitGo Raises $12M Led By Redpoint For Multi-Signature Bitcoin Wallets, Services". TechCrunch. AOL. Retrieved October 20, 2018.
  6. ^ "Crypto Startup Offers Insurance Against Quadriga Wallet Dilemma". June 11, 2019. Retrieved June 12, 2019.
  7. ^ Kharif, Olga (October 29, 2020). "Bitcoin Rally Gets Added Boost From 'Wrapped' Crypto Tokens". Bloomberg.com. Bloomberg. Retrieved November 7, 2020.
  8. ^ Dara Kerr (June 16, 2014). "Bitcoin security platform BitGo raises $12M in funding". CNET. CBS Interactive. Retrieved October 20, 2018.
  9. ^ Michael J. Casey and Paul Vigna (February 25, 2015). "BitBeat: BitGo Adds Comprehensive Insurance to Its Services". The Wall Street Journal. Retrieved October 20, 2018.(subscription required)
  10. ^ "Bitcoin worth $72 million stolen from Bitfinex exchange in Hong Kong". Reuters. August 3, 2016. Retrieved June 12, 2019.
  11. ^ Ho, Victoria (August 3, 2016). "Prominent Bitcoin exchange hacked wiping $65 million from wallets". Mashable. Retrieved June 12, 2019.
  12. ^ Kate Rooney (September 13, 2018). "Companies race to solve bitcoin's security problem despite slumping prices". CNBC. Retrieved October 21, 2018.
  13. ^ "Goldman Wades Deeper in Crypto, Betting on BitGo With Billionaire Mike Novogratz". June 11, 2019. Retrieved June 12, 2019.
  14. ^ "Settlement Agreement between the U.S. Department of the Treasury's Office of Foreign Assets Control and BitGo, Inc". U.S. Department of the Treasury. December 30, 2020.
  15. ^ "BitGo Receives NY Trust Charter from the New York State Department of Financial Services". www.bloomberg.com. Retrieved September 2, 2021.{{cite web}}: CS1 maint: url-status (link)
  16. ^ Vigna, Paul (May 5, 2021). "Galaxy Digital to Buy BitGo in Crypto Sector's First $1 Billion Deal". Wall Street Journal. ISSN 0099-9660. Retrieved May 23, 2021.
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